Raheja ITC: Can Builders Claim ITC on Contractor Bills?

Itc by raheja builder on his works contractor bill

CA Kunjan - www.canaresh.com

www.canaresh.com

304 Points Posted on 17 February 2022

can raheja builder who owns a land and if he asks a works contractor xyz to construct a new building , can raheja claim itc on xyz's bill ?

i feel, yes, because, raheja is into building line so its not his fixed asset, flats are his stock in trade. and as oc is not received, raheja has to pay gst on sale of flats.

can raheja claim itc on gst charged by works contractor?

regards, ca kunjan , mumbai 9222 9222 92

Replies (2)

Quick Summary

This discussion explores whether a builder like Raheja can claim Input Tax Credit (ITC) on bills from a works contractor for constructing a new building. The argument presented is that since the flats are considered stock-in-trade and not a fixed asset for a builder, and GST is payable on their sale before Occupancy Certificate (OC), claiming ITC on the contractor's GST charges should be permissible. Reference is made to Notification No. 03/2019-Central Tax Rate and a critical 2019 GST circular.